The Performance of Seaport Clusters - RePub - Erasmus Universiteit ...

English Summary 255
Internal competition
The presence of internal competition (competition between firms located in the port cluster)
contributes to the performance of the port cluster, because it lowers switching costs (which
prevents monopoly pricing), it leads to specialization of firms in the cluster, and it leads to
innovation.
The fierceness of internal competition is moderate in cargo handling and port services such
as pilotage and towage. Only in the LMPC internal competition is fierce, for handling
breakbulk and dry bulk. This is partly explained by the competition between port authorities
in the LMPC.
Cluster barriers
The presence of barriers to entry or barriers to exit limit the performance of port clusters.
The most relevant entry barrier is the inaccessibility of knowledge and networks. The
unavailability of ‘local capital’ is an entry barrier in Durban and the LMPC, but not in
Rotterdam. The only exit barrier is unrecoverable ‘port specific investments’. This finding
suggests a strategy to ‘tie’ firms to the cluster does not contribute to performance; rather,
exit barriers should be reduced, for instance by leasing assets to firms in the port cluster.
Heterogeneity of the cluster
Heterogeneity contributes to performance, because it creates opportunities for innovation
and cooperation. Furthermore, it reduces vulnerability for external shocks. A diverse mix of
local firms, foreign owned firms and cluster based multinationals (diversity of international
scope) and a diverse mix of economic activities are important in this respect. The LMPC is
less diverse than Rotterdam and Durban.
Trust
Trust in the cluster contributes to performance. It is the most important ‘governance
variable’. Both the LMPC and Rotterdam are not high trust clusters, compared to their
competitors. The level of trust in the port cluster in Durban is higher than in Richard’s Bay.